The government has been apparently fighting tooth to nail for the last few years to discourage investment in the real estate sector. According to official circles, involvement of corrupt money in the real estate sector has not only provided a safe passage to the crook and dishonest elements to avoid the law but also disturbed the balance of property prices in the market. However, the policymakers always find a novel solution to any problem in this country which still has very poor ranking in the global corruption perception index. The real estate and construction sectors are the engine of growth for any economy in the world, but these sectors are snubbed to stop investment in it. As a result, people are now investing in offshore companies and real estate sectors of the United Arab Emirates and Britain. Imposition of withholding tax on the banking transactions as well as the condition to reveal sources of income has added to the miseries of not only the property sector, but also the construction industry. As a result, the real estate sector has failed to use its potentials to promote investment, push industrial growth and generate employment.
At least 250 industries are directly or indirectly associated with the construction industry and anything disturbing the property business will adversely affect the whole economy. However, with little knowledge and myopic vision, the government policymakers have always caused losses to the economy rather than bringing any good to it. At least 40,000 real estate dealers were working in branded housing societies across the country, most of which have now closed their offices or shifted their businesses. Many others have not only left the sector, but also the country. Industries, including cement, brick, aluminum and dozens of others are struggling to stay in the running mod. The real estate sector is the economy of Pakistan and the government should work out a plan to lower the tax ratio to create business-friendly and investment-friendly environment in the country. The government is in the habit of launching amnesty schemes, allowing the tax evaders and others to whiten their black money. Instead, policies should be introduced to attract investment and there would be no need to bring any amnesty scheme in this case.
